You have been given this probability distribution for the holding period return for KMP stock: State of the Economy Probability HPR Boom 0.3 18% Normal growth 0.5 12% Recession 0.2 -5% What is the expected standard deviation for KMP stock? 2.0% 4.05% 5.2% 8.13% 10.4%
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- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?You have been given this probability distribution for the holding-period return for KMP stock: Stock of the Economy Probability HPR Boom 0.30 18 % Normal growth 0.50 12 % Recession 0.20 – 5 % What is the expected standard deviation for KMP stock? A) 6.91% B) 8.13% C) 7.79% D) 7.25% E) 8.85%Please provide justification1. The distribution of rates of return on XYZ stock is as follows Probability of State Occurring State of XYZ Stock Economy Return (%) Depression 0. 10 -4.5% Recession 0.20 4.4% Normal 0.50 12.0% Вoom 0.20 20.7% а. What is the expected return for the stock? b. What is the standard deviation of returns for the stock?
- You have been given this probability distribution for the holding-period return for a stock: Stock of the Economy Probability HPR Boom 0.40 22 % Normal growth 0.35 11 % Recession 0.25 – 9 % What is the expected standard deviation for the stock? Multiple Choice 7.04% None of the options are correct. 2.07% 9.96% 1.44%You have been given this probability distribution for the holding-period return for KMP stock: Stock of the Economy Вoom Probability 0.30 0.50 HPR 18% Normal growth Recession 12% 0.20 - 5% What is the expected holding-period return for KMP stock? What is the expected standard deviation for KMP stock? 10.40%; 8.13% 9.32%; 6.91% 11.63%; 7.25% None of the options are correctSuppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.35 $140 44.5% Normal growth 0.30 110 14.0 Recession 0.35 80 -16.5 Use the following equations to compute the mean and standard deviation of the HPR on stocks:
- Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (includingdividends) Boom 0.30 $ 140 53.5 % Normal growth 0.28 110 17.5 Recession 0.42 80 −12.0 Use the equations E(r)=Σsp(s)r(s)E(r)=Σsp(s)r(s) and σ2=Σsp(s) [r(s)−E(r)]2σ2=Σsp(s) [r(s)−E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)Based on the table below, what is the expected return of the stock? Probability 0.20 0.10 0.40 0.20 0.10 O 12.8% O 12.6% O 12.4% O 13.0% Return 8% 10% 12% 15% 20% 1What is the standard deviation of the returns on a stock given the following information? Could you please show the work? State of Economy Probability of state of Economy Rate of return if state occurs Boom 0.3000 0.1500 Normal 0.6500 0.1200 Recession 0.0500 0.0600 Average 0.3333 0.1100
- Suppose your expectations regarding the stock price are as follows: HPR (including dividends) 50.5% 20.5 -18.5 State of the Market Boom Normal growth Recession Probability 0.20 0.22 0.58 Mean Standard deviation - Use the equations E (r) = Ep (s) r(s) and o² = Ep (s) [r(s) — E(r)]² to compute the mean and standard deviation of the HPR on S S stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Ending Price $ 140 110 80 % %You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.1 -0.05 Normal 0.5 0.06 Expansion 0.4 0.11 What is the expected return for the stock? What is the standard deviation of returns for the stock?Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability Ending Price 0.21 $ 140 0.30 110 0.49 80 Use the equations E (r) = Ep (s) r(s) and o² = Ep (s) [r(s) - E(r)]² to compute the mean and standard deviation of the HPR on S S HPR (including dividends) 50.5% 18.0 -12.5 stocks. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Mean Standard deviation Answer is complete but not entirely correct. 13.65 % 20.48 %